AES Acquires $225 Million Power Business in Nigeria; Barge-Mounted Plant will Add 290MW and Respond to Electricity Shortfall.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Jan. 17, 2001

The AES Corporation (NYSE:AES) announced today that an AES subsidiary has acquired from the Enron Corporation a majority interest in a barge-mounted electric generating business in Lagos, Nigeria.

The barge will be located adjacent to the Egbin Power Station of the Nigerian Electric Power Authority ("NEPA"). The total investment in the business will be $225 million. AES is actively discussing non-recource financial structures with lending institutions. Y. F. Power, a Nigerian conglomerate, owns the remaining shares in the business.

The generating facility will consists of 9 barge-mounted combustion turbines with a total net output of 290MW. The barges are currently in construction and commencement of commercial operations of the power facility is expected in September 2001. AES is both manager of construction and plant operator.

Electricity from the plant will be supplied to NEPA under a 13.25 year power purchase agreement. Natural gas will be initially supplied by NEPA prior to the privatization of the Authority. Thereafter, natural gas will be supplied under a long-term contract with a competitive supplier.

This business has been undertaken as an emergency supply measure and adds needed generating capacity in a region where capacity shortfalls are estimated to be approximately 400MW.

Mr. Mark Fitzpatrick, Executive Vice President of AES, said, "This facility will help stabilize the Nigerian electric grid during a time when Nigeria goes about formulating and implementing its energy restructuring plan."

Mr. Dennis W. Bakke, President and Chief Executive Officer of AES, stated, "We are very excited about increasing our presence in the African market and are delighted to have the chance to be the first independent power generator in Nigeria. We feel that this initiative will enhance the economic, social and environmental well-being of the people of the Nigeria."

Business development milestones in 2001 include the following:

-- In January, AES Huntington Beach submitted a proposal to the California
Energy Commission to restart two retired gas-fired units that will add an
additional 450 megawatts of generation in the electricity-strapped state of
California as early as June 1, 2001, if regulatory approvals can be secured
promptly.

-- In January, AES announced the purchase of an additional 39% ownership
interest in Hydroelectrica Alicura, a 1000 MW hydro plant in Argentina, on
December 27, 2000.

-- In January, AES announced that it had successfully completed its offer to
exchange all American Depositary Shares of Gener S.A. for AES common stock.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, Chile, China, Colombia, Dominican Republic, El Salvador, Georgia, Hungary, India, Kazakhstan, the Netherlands, Mexico, Pakistan, Panama, Sri Lanka, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and fifty three facilities totaling over 53 gigawatts of capacity. AES's electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 17 million end-use customers.

In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 end-use customers.

AES is dedicated to providing electricity worldwide in a socially responsible way.

For more general information visit our web site at www.aesc.com or contact investor relations at [e-mail]. The list aes-pr-announce is an automated mailing list and can be found on the investing page of our web site. Those who subscribe to this list will receive updates when AES issues a press release.